in [Event] Ask the Experts: Tax Law Changes - One Big Beautiful Bill
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Both Forms 8606 are correct. The asterisks indicate that TurboTax is using Worksheet 1-1 From IRS Pub 590-B to calculate the nontaxable amount because both a contribution and a distribution during the year.
The $0.01 rounds to zero in the whole-dollar calculations, so your entire basis was applied to the Roth conversion. (If the calculations were done to the penny, yes, you would have $0.01 in basis remaining, but TurboTax does the calculation in whole dollars as permitted by the IRS.)
Distribution from non deductible IRA
Please help me
I got a distribution of a non-deductible IRA ($6k) in September 2023. The total basis was $4k contributed in 1995/1996. I got the 1099R form showing the 6K in box 1 and 2a, x in box 2b, code 7 in box 7 , x in box IRA/sep.simple.
i entered the info in turbo tax but i see no place to report the basis 4K. How to fill out the data in the turbo. Turbo has a track record of the basis.
Thanks
Click the Continue button on the page that lists the From 1099-R that you have entered, answer Yes when TurboTax asks if you made nondeductible contributions, then enter the $4,000 of basis in nondeductible traditional IRA contributions. If you had a nonzero balance in any traditional IRAs at the end of 2023, also be sure to, when asked, enter your year-end value in traditional IRAs.
Thank you for the response and I will try to follow your instructions. I cash out all my traditional IRA in September 2023, but I still leave the roth intact. Should I answer 0 to the balance of traditional IRA by the end of the year?
Thanks
If you had nothing in traditional IRAs at year-end, the year-end value of your traditional IRAs was zero.
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